Eric Deeran breaks down the math for hitting $500K monthly revenue: work backward from your cash-per-call ($1,000 in his example), calculate calls needed (500), size your sales team (four reps at 7 calls daily), and budget ads ($100K/month). Align spending with team capacity or waste money.
The number one reason why you haven't hit the revenue goals that you wanted to inside of your business are typically because you haven't done the math on what you need to actually hit those goals. And in today's video, we're gonna be talking about the math behind hitting $500,000, $750,000, or $1 million a month depending on what your goals are in your high-ticket business. And as a quick disclaimer, there are no guarantees in this video whatsoever. There's no earning claims. This is all just based off of showing you math and helping you understand how to reverse engineer your way to these numbers. Because a lot of times we talk to so many high-ticket businesses who who don't even do the math on what it takes to hit the goals they want to hit. If you don't know me, my name is Eric Deeran. I've built an 8-figure business. I've booked over 15,000 sales calls, and I've worked with over 828 business owners up to this point to help them scale up using an inbound system. So let's go ahead and jump right in. So number 1, you have to actually do the math on what it takes to hit whatever revenue goal you want to hit. Let's say in this instance you want to hit $500,000 a month, right? Well, first of all, you have to figure out how many calls am I going to have to book? And the easiest way to determine this is determine what is your cash per call. Now, we've talked about this in other videos, but we need to figure out, okay, if we do— let's say we do $100,000 a month right now in our business. Well, from that, how many calls do we book to get that? Let's say for this instance, we book 100 calls just for simple math. Of those 100 calls, right, our cash per call on this would be very simply $1,000. So if we know that our cash per call is $1,000, then it's going to take us 100 calls to hit $100,000. It would take us 200 calls to hit $200,000 because it's simply 200 times $1,000, right? And then if we wanted to hit $500,000, then we would simply need 500 calls to do that, right? And so it's pretty simple when you can break it down like this. You can say, okay, great, that's how many calls I need to book. Well, then of those, let's say I have to book 500 calls. Okay, great. Can my current sales team take 500 calls? So my current sales team, can they take that? If you have 2 salespeople, you probably are going to need a 3rd salesperson because each salesperson— let's say one salesperson, let's use our math here, let's do some math. There's 22 working days in a month. Let's say that salesperson can take 7 calls a day. Well, then one salesperson is basically going to get us 154 calls per month. Well, then if I need to do 500 calls, then I have to do 500 divided by 154. I'm going to need 3.24 reps. Well, obviously I can't have 0.24 of a rep. And so of those 3.24 reps, I probably need 4 reps, right? This is the math nobody does. And so now that we know this, we need 4 reps. Okay, great. How many reps do we have right now? Well, we have 2 reps. Well, how long does it take us to get 2 more reps? What's the ramping period? How long is it going to take us to ramp them up to KPI? Well, typically it's probably going to take about 1 month statistically to get 1 rep ramped, and you could do 2 reps at the same time. So typically it's going to take you probably 1 month to ramp both of those reps. And so of those 2 reps, we have to plan for, you know, a week of training and then 3 weeks of taking calls. 2 of those weeks being them out of KPI, and the last week is when they start to fall within KPI. Now, that's not including if those reps don't even work out. And so if we need 2 more reps, then we also have to think about, okay, we need 2 more reps. How many people do we have to hire to find 2 really good reps? We need to interview probably about 10 people. And so this starts to show you, okay, great. Now that we know, okay, we want to hit $500,000 a month. Well, based on our cash per call, we're going to need 500 calls. And then based on, you know, our sales team, we can't take 500 calls right now. And so we would need to hire 2 more reps. Well, how long is that going to take? That's It's gonna take us about a month to hire 2 more reps to get them ramped up. How many interviews I'm gonna have to do to get 2 more reps? Well, I'm gonna need to do probably 10 interviews to get 2 more reps. And then what am I going to have to spend on ads to get 500 calls? Well, let's say my cost per call right now is $200. Cost per call. Well, if I do 200 times 500, well, it's gonna cost me probably $100,000 to do that. So how much am I spending right now on ads? How much— when I look at $100,000 divided by 30 days, that means I have to spend $3,033 a day on ads And I need to book— let's do 500 divided by 30 days. We need to book 16.6 calls per day. You have to break it down granular like this so you can see, okay, great, you know, how much am I spending per day right now? I need to get to $3,333 a day. I need to book calls for $200 and keep that within KPI. I need to book 16.6 calls a day. I need 500 calls booked every single month, right? If I don't have enough salespeople to take those calls, then I need to hire enough salespeople to take those calls. That's going to take me a month to do. And so you start to put these pieces together of like, well, we don't want to just start spending $100,000 a month right Now, because then what's going to happen is you're not going to have reps to take it, and so you're not going to hit the revenue. But hopefully this starts to just give you an idea of— you have to do the math. The easiest way I found it is you figure out what is your cash per call, and then you say, okay, what's my cost per call? And then do I have enough salespeople to take those calls? That's the simplest way to look at it, because we just want to fill the salespeople's calendar, and then we want to get more salespeople, and that's it. Hopefully this is helpful. If you want our help mapping this out, actually installing a system so you can get 500 calls per month, click the link below, schedule a call with our team, and we'll see if we can possibly help. And hopefully videos like this are continuing to help you. Check out more of the videos on the channel, and we're happy to help. We'll talk. We'll see you in the next one.
